The Global Islamic Fund for Refugees (GIFR) is a first-of-its kind hybrid trust – structured to enable flexible donor engagement in a way that addresses the issue of shrinking philanthropy while creating a new resource to tackle the prevailing refugee crisis worldwide.
This fund was established in partnership between IsDB’s property alleviation arm, Islamic Solidarity Fund for Development, and the United Nations High Commissioner for Refugees (UNHCR) – with each committing US$50 million for a 10-year period as endowed capital.
Strategic partner, Saudi Arabia’s King Salman Humanitarian Aid & Relief Centre, and Islamic Relief USA contributed another US$10 million each. GIFR, launched in late 2022, and operationalized in late 2024, aims to attract at least US$500 million in total as endowed capital.
Fund manager Franklin Templeton was appointed to invest the endowed capital in various Islamic asset classes – with the yields largely going to fund refugee assistance programs. The endowed capital is refunded to donors when the GIFR 10-year tenure expires.
IsDB Lead Fund Management Specialist Karim Ait Chabane explained to IFN Investor that the external fund manager remains under the purview of IsDB’s investment department, mandated to deliver at least 6% annual yields. Taking a more conservative approach, half the fund’s NAV is placed in Sukuk, with equities of 35% in developed markets and 10% in emerging markets, plus cash.
To raise the extra capital, Karim said the outreach won't just be to government agencies and NGOs. “For the resource mobilization strategy, we are also looking at family offices, high net worth individuals and more. It’s really an opportunity to tap the massive wealth pool, which is basically held by all of these prospective partners.”
Karim said the GIFR was born out of necessity to channel more resources towards forcibly displaced people – due to the fallout of conflicts in Sudan, Syria and other parts of North Africa’s Sahel region. Rather than be subject to the vagaries of uncertain donor receipts, IsDB opted for a dedicated fund approach.
IsDB handles management of this fund and on-ground implementation is then done by UNHCR and its partners.
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